BANK RESULTS: National Australia Bank's European division, which includes National Irish Bank and Northern Bank, has reported solid growth in the six months to the end of March but does not state how much profit was generated in Ireland.
For the first time since it began operating in Ireland, NAB has reported consolidated results for its European operations, including the two Irish banks, the Clydesdale Bank in Glasgow and Yorkshire Bank in Leeds.
Profits at the European division increased by 16.4 per cent to £170 million sterling (€273 million). Mr Steve Targett, chief executive for Europe, said the bank would issue a breakdown of the profits earned at each of the banking operations when its full-year figures were announced later this year.
He said Northern Bank had performed strongly during the six-month period while NIB was showing signs of putting its troubles behind it.
"Northern Bank enjoys the number one position in Northern Ireland and we will do whatever it takes to protect that position. There is a new management team at NIB. It's market share is very small but there are growth opportunities once it gets over its problems."
In the same period in 2001, NIB reported a 21 per cent increase in profits to €11.2 million with Northern Bank showing a 5 per cent rise to €77.8 million.
NIB is still awaiting a report by inspectors appointed by the High Court into the unauthorised sale of CMI offshore investment bonds to its customers. The inspectors are also examining the overcharging of customers at certain of its branches around the Republic.
Earlier this month, NAB presented a restructuring plan that could affect jobs at NIB and Northern Bank. Its Positioning for Growth plan includes the cutting of more than 500 jobs from its European operations over the next 18 months. Mr Targett said there would be no forced redundancies under the plan.
The Irish Bank Officials' Association has criticised the third restructuring of NIB in as many years claiming it will lead to a 13 per cent reduction in front office services.
This move was viewed as NAB shelving its ambitions to make further acquisitions in Britain and Ireland. Mr Targett said the bank would be looking at all of the alternatives for each of the British and Irish banks and would develop a plan with regard to those options within the next three to six months. "We are comfortable with what we have which is a nice platform to bring through further growth," he said.
At group level, NAB reported profits of 2.3 billion Australian dollars (€1.3 billion), up 11 per cent on the same period last year.
